BRICS and Global Finance: China Advocates for Reform Amidst Global Economic Shifts

China's Role in Global Finance Reform

At the recent BRICS summit in Kazan, President Xi Jinping called for significant financial reform to enhance representation for emerging economies, particularly those in the Global South. Beijing is increasingly vocal about the need for changes within the multilateral financial system dominated by the Western institutions like the IMF and World Bank. As tensions escalate with Washington, the initiative to strengthen ties with the Global South could reshape future global economic structures.

Economic Landscape and Strategic Alliances

China represents approximately 17% of global GDP and contributes around 30% of annual growth. Yet, its voting power, notably at the IMF, is significantly lower than nations like the United States. Experts like Chen Fengying emphasize the importance of embracing Global South countries amidst geopolitical tensions. Recent discussions at Renmin University highlighted the push for de-dollarisation and increased cooperation among BRICS members to reduce reliance on the USD.

Empowering New Development Institutions

Under the BRICS framework, Xi proposed strengthening the Shanghai-based New Development Bank and enhancing multilateral ties through regional development. As the largest shareholder of the AIIB, China aims to demonstrate leadership in instituting international standards for development cooperation, countering fears about its growing influence over traditional international financial institutions.

Conclusion: A Shifting Paradigm in Global Finance

China's engagement in reforming global financial governance seeks to address imbalances and push for more equitable representation in key institutions. As President Xi Jinping continues to advocate for cooperation with the Global South, the dialogue around de-dollarisation and success of new development banks is critical for evolving the financial landscape.